Restaurant Opportunities Centers United

www.rocunited.org
BUSSERS, RUNNERS, AND
BARTENDER ASSISTANTS
The state minimum wage is $7.50, but the
tipped minimum wage is only $2.13. The
federal tipped minimum wage has stood at
$2.13 for the last 23 years. In 1991 it was
pegged at 50% of the federal minimum wage.
In 1996 it was ofcially depegged from the
minimum wage and has remained frozen
ever since. Including tips, tipped workers
in New Mexico earn a median wage of only
$7.00 equivalent to $14,560 for a full-time
year-round employee. However, tipped workers
generally are allowed part-time schedules that
vary by season. Seven states have eliminated
the tipped minimum wage in those states
tipped workers receive the full minimum wage.
The Rising American Electorate refers to the
demographic groups that are growing the
most rapidly, historically with lower voter
participation rates, but whose growing civic
engagement has been crucial in tipping the
scales in recent elections. Tipped workers
are primarily women, 30% are moms, and
although many are married, half of these are
single moms. Although the median age for
tipped workers is 29, half of them are younger.
And they are racially diverse, overrepresented
by Latinos, Asians, and African Americans
compared to the broader workforce. They are
also a highly educated group. Tipped workers
are a snapshot of the RAE.
TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE
THE STATE
OF TIPPED
WORKERS
In New Mexico there are nearly 29,000 tipped
workers, and over 68% of these work in the
restaurant industry. The restaurant industry
employs nearly 10% of the workforce and
is one of the fastest growing sectors of the
US economy. Unfortunately, the restaurant
industry offers several of New Mexicos
lowest paid jobs. Five of the ten lowest paid
occupations are in the restaurant industry,
and one of these is a tipped occupation.
TIPPED
MINIMUM WAGE
$2.13
MINIMUM WAGE
$7.50
MEDIAN WAGE FOR
TIPPED WORKERS
INCLUDING TIPS
$7.00
GENDER
69%
3
1
%
TIPPED WORKERS WHO
WORK IN RESTAURANTS
68%
LOWEST PAID
TIPPED OCCUPATION
NEW MEXI CO
In states with a tipped minimum wage of $2.13,
the poverty rates for workers of color is nearly
double that of the seven states without a tipped
minimum wage, with one in four living in poverty.
WHITE PEOPLE OF COLOR ALL
POVERTY RATES IN $2.13 STATES
16% 25% 20%
POVERTY RATES IN STATES WITH NO TIP CREDIT
13% 14% 14%
TIPPED WORKERS AND THE RISING AMERICAN ELECTORATE
White 42%
Latino 40%
Other 9%
Asian 7%
Black 3%
<_
24 44%
25-34 18%
35-44 15%
45+ 24%
RACE
AGE
HIGHER EDUCATION
EDUCATION
PARENTS WITH CHILDREN
ON FREE LUNCHES
49%
MARITAL &
PARENTAL
STATUS
49
%
Married 23%
Parents 26%
Dads 17%
Moms 30%
Single Moms 15%
P
O
V
E
R
T
Y
RAISE THE MINIMUM WAGE
Living off tips is precarious, but it doesnt have
to be this way. Raising the minimum wage and
eliminating the tipped credit would provide
a signicant stimulus to the U.S. economy in
tipped wages alone, providing a boost to local
economies and the broader food industry, as well.
FOR MORE INFO rocunited.org/stateoftippedworkers/
The industry projects employment will continue
to grow at the rate of 11% over the next decade.
H
INDUSTRY PROJECTED SALES 2014

3.2 BILLION
B
I
L
L
I
O
N
I
N
D
U
S
T
R
Y

G
R
O
W
T
H
9%
P
O
V
E
R
TY

R
A
T
E
P
O
V
E
R
TY

R
A
T
E
T
I
P
P
E
D

R
E
S
T
A
URA
N
T

W
O
R
K
E
R
S
T
I
P
P
E
D

WO
R
K
E
R
S
27
%
23
%
WORKERS ON
FOOD STAMPS
2X REST OF NM
WORKFORCE
21%
29
MEDIAN AGE
of tipped
worker moms
are single moms
MINIMIM
WAGE
$10.10
$12.00
$15.00
TIPPED
STIMULUS
$12.7
$19.4
$30.1
TIPPED RESTAURANT
WORKERS
live in POVERTY
at 2x the rate of
the New Mexico
workforce.